July 21, 2021 – Fourteen national health stakeholder groups have praised the reintroduction of a bipartisan House bill that will accelerate Medicare’s move to value-based payment by boosting accountable care organizations (ACOs) and other alternative payment models (APMs).
The bill, called the Value Act for short, strengthens the Medicare Shared Savings Program by updating the program to recognize and reward ACOs.
Specifically, the bill increases shared savings rates, updates risk adjustment rules, eliminates the artificial distinction between “high” and “low” revenue ACOs, addresses ACOs’ “rural glitch,” and restarts the ACO Investment Model.
The bill also reinforces the shift to value-based care by extending the 5% Advanced APM incentive payments for an additional six years and authorizing a study of the overlap of various Medicare alternative payment models.
Lastly, the bill mandates a report by the Government Accountability Office on health outcomes and racial disparities in Medicare patients cared for by ACO participants compared to traditional Medicare and not assigned to any other APM.
“The Value in Health Care Act of 2021 makes a number of important reforms to strengthen Medicare’s value-based care models and Accountable Care Organizations to ensure that these models continue to produce high quality care for the Medicare program and its beneficiaries as well as to generate savings for taxpayers,” the groups said in a letter to Congress.
The letter was signed by:
- American Academy of Family Physicians
- America College of Physicians
- American Hospital Association
- American Medical Association
- America’s Essential Hospitals
- AMGA, America’s Physician Groups
- Association of American Medical Colleges
- Federation of American Hospitals
- Health Care Transformation Task Force
- Medical Group Management Association
- National Association of ACOs